Foreign interference an 'issue' in Oz unis

The country's top intelligence chief says Australia needs to be "very conscious" of the possibility of foreign interference in universities.

Duncan Lewis, director-general of the Australian Security Intelligence Organisation, on Tuesday acknowledged it was an issue but was unable to give specific details.

"We need to be very conscious of the possibilities of foreign interference in our universities," he told a Senate estimates hearing in Canberra.

"It can go to the behaviour of foreign students, it can go to the behaviour of foreign consular staff in relation to university lecturers, it can go to atmospherics in universities."

Mr Lewis said he "strongly identified" with comments made by Frances Adamson, Secretary of the Department of Foreign Affairs and Trade, in a speech to the University of Adelaide's Confucius Institute earlier this month.

She urged students to "respectfully engage" in debate rather than "silently withdraw" when faced with something unusual, unsettling or plain wrong.

The Foreign Affairs' boss acknowledged there had been attempts at untoward influence and interference but encouraged universities to remain true to their values.

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Attorney-General George Brandis said the federal government will introduce a bill before the end of the year to deal with foreign interference.

The comprehensive legislation, which has been in development for some months, will deal with all aspects of foreign interference, he said.

"From, at one extreme, espionage, to - at the other end of the scale - foreign agents of influence acting on behalf of foreign principals to influence the political process," Senator Brandis told the committee.